Birmingham City Council has been in secret negotiations with ministers over its bid to bring the "new Wembley" to the Midlands.

The FA pulled out of a £600 million project on Tuesday after failing to get government and city backing for a new Wembley stadium at Wembley. It is now seriously considering the Birmingham option as the row over the collapse of the Wembley scheme sparked criticism of the government.

The prime minister condemned the wealthy soccer industry for failing to tap into its funds to back a new Wembley.

The Conservatives called for the culture secretary's resignation in Commons clashes between Tony Blair and William Hague on Wednesday.

Smith described the situation as "disappointing" and contrary to previous assurances given to the government that everything was on track.